Hologic results top view, outlook raised

MariaArmental

Hologic Inc.
HOLX, +0.16%
narrowed its losses for the quarter as revenue increased slightly, driven by the breast health segment.

Results beat the company's own guidance, and the Bedford, Mass., laboratory equipment and surgical tools company raised its guidance for the year to per-share earnings of $1.37 to $1.40 and revenue of $2.46 billion to $2.49 billion. It had previously called for $1.34 to $1.38 and $2.46 billion to $2.49 billion.

Shares climbed more than 6% in after-hours trading.

Hologic has posted strong results from its breast-health business due to the adoption of its 3D mammography technology. However, the company's bottom line has taken a hit from a drop in ThinPrep pap test sales and NovaSure systems as well as the elimination of revenue from Lifecodes, which the company sold in March 2013.

The company also has been under fire for years by some analysts and investors who say its stock price has underperformed because of mismanagement, expensive acquisitions and rising debt.

Late last year, the company agreed to add two board members to placate activist investor Carl Icahn. Last month, the company went on to create a new position of chief operating officer amid a series of leadership changes.

Overall, for the quarter ended March 29, Hologic reported a loss of $16.8 million, or six cents a share, compared with a year-earlier loss of $51.1 million, or 19 cents a share. Excluding restructuring-related charges and other items, adjusted earnings rose to 37 cents from 35 cents. Revenue rose 2% to $625 million.

Hologic had forecast per-share earnings of 32 cents to 34 cents and revenue of $605 million to $615 million.

Breast health segment revenue rose 8.5%, while diagnostics revenue decreased by 1.9%, which included impacts related to the sale of its Lifecodes business in March.

For the current quarter, Hologic forecast per-share earnings of 33 cents to 34 cents and revenue of $615 million to $625 million. Analysts polled by Thomson Reuters expected a per-share profit of 34 cents and revenue of $616.8 million.

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